Stripping Dimon of Chairman Title Is ‘Nuts,’ Langone Says

Kenneth Langone, the co-founder of Home Depot Inc., listens during a Bloomberg Television interview in New York on Friday, April 26, 2013. Photographer: Jin Lee/Bloomberg

April 26 (Bloomberg) -- Kenneth Langone, the billionaire
co-founder of Home Depot Inc., said Jamie Dimon is one of the
best U.S. business leaders and should keep his dual role as
JPMorgan Chase & Co.’s chairman and chief executive officer.

“He should be both,” Langone, 77, said in an interview on
Bloomberg Television, calling it “nuts” to consider splitting
Dimon’s titles. “He’s probably the finest CEO across any
business in America.”

Dimon, 57, has come under increasing pressure to give up
the chairman’s job since New York-based JPMorgan lost more than
$6.2 billion on a derivatives bet last year. The board of
directors has stood by him, urging investors to vote against a
shareholder proposal to name a separate chairman at next month’s
annual meeting.

“I love Jamie, I know him well personally, I love him,”
said Langone. The so-called London Whale episode and the bank’s
subsequent record annual profit proved that JPMorgan was a great
bank, he said. “Go to Europe where they split them up. Where
are the results? Where are the economic results?”

Directors of JPMorgan have said that Dimon’s dual role
remains the “most effective leadership model” for the company.
A similar proposal last year failed with 40 percent of the vote.

Best Management

JPMorgan is the biggest U.S. bank by assets, and San
Francisco-based Wells Fargo & Co. is the nation’s largest home
lender. Langone said he owns JPMorgan warrants.

The bank’s trading loss was tied to credit derivatives
amassed by Bruno Iksil, a U.K. trader in the chief investment
office who was dubbed the London Whale because his positions
were so big.

A CEO who doubles as chairman doesn’t need to hold himself
accountable because the rest of the board’s directors will do
that, Langone said.

“I’ve got nine people in a room or seven or five or
whatever the number is,” Langone said. “They’ll fire me if I
do the wrong thing.” Directors who don’t have the courage to do
that shouldn’t be on the board, he said.